Analysis & Opinion

TOKYO Jan 8 (Reuters) - Japan's government wants to create
a framework where it can cooperate closely with the Bank of
Japan to bring an early end to deflation, a draft of an economic
stimulus package showed on Tuesday.

The government will watch foreign exchange moves closely and
take appropriate action when needed, a draft distributed to
reporters showed.

Japan aims to spur growth by encouraging research and
development, as well as investment in renewable energy, the
draft showed.

The draft did not mention the size of the economic package
but the government is likely to spend up to 10 trillion yen
($114 billion) on economic stimulus, several sources told
Reuters on Monday.